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Stay of Action

Posted on May 3, 2019 | Posted in Five Liners, Tax

Kaye v. Fogler Rubinoff LLP 2019 Ont SCJ

A client sued a lawyer alleging that the lawyer was negligent in preparing a tax plan and noting that CRA had re-assessed the client. The lawyer brought a motion to stay the action pending the client’s appeal of the CRA assessment. The court stated that the tax and civil actions had substantial overlapping issues and shared the same factual background and that a successful appeal in the tax action would render moot the civil action against the lawyer. The court held the benefit of forestalling an unnecessary action, outweighed the prejudice of the plaintiff being delayed for a year if its tax appeal were unsuccessful.

 

Jonathan Speigel

 

Written by Jonathan Speigel, the founding partner of Speigel Nichols Fox LLP, leads the litigation and construction practices.

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